Bankruptcy Frequently Asked Questions and Answers

Can I Own Anything After Bankruptcy?

Yes. Many people are under the impression that they will not be able to own anything for a period of time following filing for bankruptcy. This is not the truth. After the bankruptcy is filed, you will be allowed to keep your exempt property and anything acquired after the filing date. However, within 180 days after filing for bankruptcy, if you receive life insurance benefits, an inheritance or a property settlement, that property or money might have to be paid to your creditors if it is not exempt.

Will Bankruptcy Wipe Out All My Debts?

Yes, but there are exceptions. Bankruptcy will not wipe out: (1) money owed for child support or alimony, fines and some taxes; (2) debts not listed on your bankruptcy petition; (3) loans you got by knowingly giving false information to a creditor, who reasonably relied on it in making you the loan; (4) debts resulting from “willful and malicious” harm (5) student loans, unless if the court decides that payment would be an undue hardship (rarely).

Can Filing Bankruptcy Stop Bill Collectors From Calling?

Definitely, Yes. An automatic stay is put into effect and forbids bill collectors from taking ANY action to collect debts.

Who Will Know?

Bankruptcy filings are public records. But, under normal circumstances, no one will know you filed for bankruptcy. The Credit Bureaus will record your bankruptcy and it can remain on your credit record for 10 years.

Will I Have to Go To Court?

No really. In most bankruptcy cases, you will have to go to only one meeting in person. The “meeting of creditors”, is a designated time for you to meet with the bankruptcy trustee and any creditor that wants to join. More often than not, it’s a non event. You will be asked about your bankruptcy forms and general financial situation. From time to time, if any complications arise or if you choose to dispute a debt, you may have to appear before a judge at a hearing. If this situation does occur, you will receive notice with a court date and time from the court as well as from your attorney. There are 7 trustees all with different personalities and different ways of overseeing the case and the law. You need an experienced attorney to guide you. I have personally witnessed “train wrecks” involving unrepresented debtors and overzealous trustees in the Jacksonville, Florida bankruptcy courthouse.

Will My Spouse Be Affected?

This is a little tricky. Yes and No, both incomes have to be counted to determine if you qualify. But once the family or household qualifies either spouse can file alone. Does my spouse have to file? No, your spouse does not have to file just because you do.

How Quickly Can I File Bankruptcy?

How quickly are you able to provide your attorney with the information needed to prepare your bankruptcy case is how fast you will be able to file. Typically, filing for bankruptcy takes about a month. However, in an urgent situation our office may be able to file the same day, if you are able to supply us with the adequate paperwork to do so.

Do I Have to Use A Lawyer To File Bankruptcy?

No, but, it’s like cutting your own hair to save money. You can do it but be damn careful. Chances are it’s not going to be pretty. A lawyer is not required for you to file a Chapter 7 or a Chapter 13 bankruptcy. Thanks to changing laws requirements and aggressive trustees, filing for bankruptcy is a very complex matter. It is advised that you seek the services of an experienced bankruptcy attorney. Although it may require the payment of some legal fees, you will end up with peace of mind, less stress, and quite possibly more money saved than if you were to file on your own. I have seen some bad train wrecks with self filers when they get the wrong trustee.

What Is A Bankruptcy Discharge?

Under the federal bankruptcy law, a discharge releases the debtor from personal accountability for certain detailed types of debt. It’s gone. You are no longer obligated to pay debts that are discharged in your bankruptcy case. The discharge acts as a permanent order to your creditors; halting them from taking any form of collection action on discharge debts.

What is Reaffirmation?

It is a process by which you re-agree to pay a secured debt usually a car loan, but it could be a house or boat or furniture.

Do you have a question not answered on this page or elsewhere on our web site? Are you contemplating filing bankruptcy but lost by the complicated process and just don't know where to turn?

The Law Offices of Robert Peters offers a FREE initial consultation where you can lay out the facts regarding your situation and learn the options available to you that will give you the chance to restart your life with dignity and without the stress.